What Is Voluntary Administration?
A voluntary administration is a formalised type of administration that stands the company in a stationary state. This is where the voluntary administrator investigates and reports on the company’s history and financial position to creditors. The voluntary administrator also makes recommendations about its future.
Creditors can then make a decision whether to:
- Accept a Deed of Company Arrangement if one is proposed by the directors,
- Liquidate the company
- Return the company to the control of the directors.
A Deed of Company Arrangements intention is to save the company so it may continue to operate. The DOCA is a procedure that permits a company to make an arrangement or compromise of which is binding on all creditors. If accepted by the creditors the company may be saved and continue to operate.
Voluntary Administration Help
Some of the main causes for voluntary administration may include waiting for customer payments, supply delays, change in business structure, tax debt problems and more.
If you are considering voluntary administration for your business, contact us first to discuss this and other business debt solutions. We are experienced and specialise in this type of finance or procedure. Call today to book a free consultation.